Are you ready to take your Canadian startup to the next level and expand into an international market? Congratulations, you’re already thinking big!
But hold on, before you start popping those champagne bottles, let’s talk about how actually to make this expansion a success. And it all starts with budgeting your international expansion.
A recent survey shows that startups fail because of a lack of cash. Based on an analysis of over 100 startups, 38% reported running out of money as the primary cause of failure. A well-managed budget ensures that a startup has enough cash for short-term and long-term goals, helping it stay agile during times of change.
In this blog, we’ll dive into how to set realistic budgets for your international expansion and provide you with some Canadian, specifically Brampton, market references to help you estimate costs. We’ll cover everything from:
- Cost of Incorporation
- Real Estate Costs
- Cost of Professional Business Services
- Average Marketing Costs
Budgeting for your Startup Incorporation in Canada
Incorporating a business in Canada means your business can enjoy the same rights as a person in Canada. This structure gives owners limited liability, lower tax rates, government grants, and a continuous existence (even after you die). Please note, Sole Proprietorships and Partnerships are unincorporated businesses.
Overall, depending on the size of your company and expansion plans, it can cost anywhere between $400 – $1200 to incorporate your business in Canada.
If you’d like more details on how to incorporate your business in Canada or are wondering how to select between Provincial and Federal incorporation, we suggest a thorough read of our recent blog: How to Register your Startup in Canada.
Budgeting for Startup Real Estate in Canada
Commercial office spaces in Canada can vary from a few too many thousand dollars a month based on the location, size, and vibe you want to create for your business. Here are some benchmarks for office spaces in Brampton compiled for you:
When you’re expanding your startup in a new market, committing to a physical office and the costs that come with it can be a very difficult decision for many reasons:
- You don’t want to sign on to a lease too early on because it could limit your flexibility. You may want to study different neighbourhoods first to understand the best-suited areas.
- You may not want to burden yourself with administrative tasks like maintaining an office, managing utilities, and insurance, which can distract you from planning and executing your expansion.
- Upon renting/leasing a physical space, you will be forced to invest further in interiors and other aesthetic costs to ensure your employees enjoy the company space, which can block off funds that could be used more strategically.
Startups that enter incubation programs like our BHive Global Entrepreneur Incubation Program get six months of prime real estate in Brampton, completely free, to work out of. This means you get office space, equipment, and amenities free of charge, without the hassle of managing space. Entrepreneurs get to utilize these six months to land and focus on actually planning their expansion while controlling their burn rate.
Budgeting for Cost of Professional Business Services in Canada
As you set up your business operations in Canada, you will find that you need to engage the services of professional businesses to help you manage certain aspects of your operations. From legal and accounting services to marketing and advertising agencies, the costs associated with professional business services can quickly add up.
Below is the range you can expect for each of these services:
At BHive, our startups get access to regular workshops from the best-in-business professionals in Canada. From lawyers, and accountants, to mentors, we support all our entrepreneurs with detailed Compliance Advice, ensuring their businesses are laid on secure foundations.
Our cohorts also get to save thousands of dollars in software deals because of our partner networks. We provide our entrepreneurs with access to exclusive deals on the likes of WordPress, Stripe, Yousign, Quickbooks, AWS Activate, Freshworks, Typeform, Hubspot, and many, many more such platforms that can help you hit the ground running in Canada.
Budgeting for Startup Advertising Costs in Canada
Once you’re ready to announce to your new market that you’ve arrived – advertising becomes a critical cost to budget for. It can also be one of the most significant expenses because it requires some level of trial and error to find the right advertising fit for your business. From digital marketing to traditional advertising channels, here are some benchmarks for you to prepare for:
At BHive, we help our entrepreneurs with tailored introductions and exclusive networking opportunities with people within your industry to fast-track your market entry. Our expertise in government programs and grants also ensures our startups can maximize their budgets as much as possible.
Budgeting for your startup expansion in Canada requires careful planning and consideration. From real estate and talent acquisition to professional business services and advertising costs, there are a variety of expenses to take into account when expanding your business. However, by implementing smart budgeting strategies and leveraging the resources and programs available in Canada’s startup ecosystem, you can help ensure your expansion is successful and sustainable.
Remember to conduct thorough research, identify your priorities and goals, and stay focused on maximizing value and minimizing costs. With a sound budgeting plan in place, you’ll be well on your way to achieving your expansion goals and realizing the full potential of your startup in Canada!
Want to expand your startup in Canada?
Our business incubation program provides you with the tools and resources you need to grow your business when you need them most. Apply to BHive’s Global Entrepreneur Incubation Program today!